Initial jobless claims in the US down sharply last week

Initial jobless claims in the US, were down sharply last week to 334,000, to around a five-year low, the Labour Department said yesterday.

The number of people filing for first-time unemployment benefits was down 24,000 from the previous week's revised figure of 358,000. Analysts had projected the figure at 345,000.

The closely watched gauge of the labour market had trended downward through the year, indicating a  strengthening of labour market.

Though the figures had been seasonally adjusted, they had been volatile in recent weeks as annual summer shutdowns for retooling got under way at auto companies.

The claims were up 14,000 to a two-month high the week of 6 July with the drop last week bringing claims near the five-year low of 327,000 recorded in late April.

The less-volatile four-week average stood at 346,000 last week, according to the Labour Department, a figure which was down 5,250 from the previous week and back below the 350,000 level that, according to economists indicated moderate labour market growth.

According to Federal Reserve chairman Ben S Bernanke, he expected the central bank to begin tapering its bond-buying stimulus programme this year if the unemployment and the broader economy continued to improve as projected.

Continuing claims, which are reported with a one-week lag and reflect the number of people already receiving benefits, were up 91,000 to 3.11 million in the week that ended 6 July, up to the highest level since February.

The four-week average of the continuing claims rose 37,000 to 3.02 million.

Meanwhile, the unemployment rate in Florida stood steady at 7.1 per cent in June, governor Rick Scott announced yesterday, ahead of the scheduled Friday release of the figures in an unexpected move.

According to the latest numbers there were  additional 2,300 private-sector jobs in the Sunshine State.

"The creation of more than 2,000 private sector jobs last month is further evidence of the state's continuing economic recovery," Scott said in a news release that was not expected by the state government as also the media.

The release of the monthly numbers came even as  protesters called for the governor's return to the Capitol to address their concerns about the "stand your ground" self-defgaurence law and Department of Children and Families Secretary David Wilkins' decision to resign.

According to Florida Department of Economic Opportunity spokeswoman Jessica Sims, the local unemployment breakdowns still would be released this morning, however, the statewide figure was announced because the US Department of Labor Bureau of Labor Statistics had "inadvertently" released the monthly percentage yesterday.

The 7.1 per cent unemployment rate was the lowest in Florida since September 2008 and remained below the 7.6 per cent national mark.

Florida had been below the national average for four months and the monthly statewide number also came as Scott had traveled for several new job announcements.